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Columbus plans to pour a majority of its casino-tax revenue back into its general fund to cover
steep state budget cuts, according to a blueprint the city council is expected to approve on
Monday.

City officials are still not sure how much money they’ll receive from the casinos, but they
estimate $15 million to $18 million annually beginning in 2013.

It’s likely that between $8 million and $10 million of that pot will go to the general fund next
year, allowing Mayor Michael B. Coleman and the city council to choose what to do with that money
each year at budget time.

The other three priorities for spending casino cash starting next year:

• 25 percent (roughly $4.5 million) is pledged toward the city and Franklin County’s $250
million purchase of Nationwide Arena. The purchase price includes maintenance, operating and
debt-service costs through 2039. This percentage will rise in future years.

• $1.3 million will go toward the $15 million promised to casino developer Penn National Gaming
to clean up the site and improve roadways and other infrastructure. The city promised the money as
part of a lawsuit settlement in which Penn National agreed to annex the casino to the city. Payment
on the debt will decrease each year until the final payment of $789,000 in 2032.

• $750,000 toward improving the neighborhoods around the casino on the West Side. A total of
$2.5 million will be put into this fund through 2014. The legislation before the council on Monday
sets the allocations indefinitely. The Hollywood Casino’s total cost is about $400 million. It is
set to open Oct. 8. Cincinnati’s casino is expected to open next spring. Casinos in Cleveland and
Toledo opened in May, generating about $500,000 in tax revenue so far for Columbus.

Coleman, City Auditor Hugh Dorrian and Council President Andrew J. Ginther all agree that no
matter how much revenue comes in, it won’t be a jackpot for the city.

“The weight of the state’s cuts really hit hard in 2013, so anyone who thinks that casino
revenues are going to create a windfall for the city is mistaken,” said Dan Williamson, Coleman’s
spokesman. “Those cuts are deep, and they are significant.”

Coleman and Ginther have discussed for nearly a year what to do with the revenue, with Ginther
suggesting some of the funds could go to support the arts, tourism and human services.

Coleman has pushed for the money to be used for the general fund to offset state cuts to city
revenue streams. Dorrian anticipates they will strip as much as $18.7 million from the city’s
budget in 2013.

About 70 percent of the city’s $738.5 million general-fund budget this year goes to police and
fire protection.

“This legislation sets up the mechanism to place the dollars, but we will still have active
community discussion on what we do going forward,” said John Ivanic, city council spokesman.

Dorrian said yesterday that he is aware of the city Funding Review Advisory Committee study,
released last week, that proposed using casino tax money to help fund the arts, tourism and human
services.

“I and the mayor both agree, and I remain convinced, that any residue left from the casino funds
once we have fulfilled our obligations should go toward the general fund,” Dorrian said. “I
testified to (the committee) that that was and remains my stance.”